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Assume that you are on the financial staff of West Enterprises, and you have collected the following data: (1) The yield to maturity on the
Assume that you are on the financial staff of West Enterprises, and you have collected the following data: (1) The yield to maturity on the companys outstanding 8% annual coupon bonds is 6.0%, and its tax rate is 40%. (2) The risk-free rate is 3.5%, the market risk premium (rM rRF) is 5.5%, and the firms beta is 1.05. (3) The firms capital structure consists of 45% debt and 55% equity. What is Wests WACC?
6.72%
7.43%
7.85%
8.21%
8.59%
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